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Centum Investment Co (NAI:CTUM) Degree of Operating Leverage : 6.72 (As of Sep. 2024)


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What is Centum Investment Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Centum Investment Co's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 6.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Centum Investment Co's Degree of Operating Leverage or its related term are showing as below:

NAI:CTUM's Degree of Operating Leverage is ranked worse than
89.21% of 621 companies
in the Capital Markets industry
Industry Median: 0.75 vs NAI:CTUM: 6.72

Centum Investment Co Degree of Operating Leverage Historical Data

The historical data trend for Centum Investment Co's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Centum Investment Co Degree of Operating Leverage Chart

Centum Investment Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.85 1.46 0.84 -64.16 -280.56

Centum Investment Co Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.03 -64.16 11.90 -280.56 6.72

Competitive Comparison of Centum Investment Co's Degree of Operating Leverage

For the Capital Markets subindustry, Centum Investment Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Centum Investment Co's Degree of Operating Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Centum Investment Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Centum Investment Co's Degree of Operating Leverage falls into.


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Centum Investment Co Degree of Operating Leverage Calculation

Centum Investment Co's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 4695.731 (Sep. 2024) / -3800.12 (Sep. 2023) - 1 )/( 8062.416 (Sep. 2024) / 12078.142 (Sep. 2023) - 1 )
=-2.2357/-0.3325
=6.72***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Centum Investment Co  (NAI:CTUM) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Centum Investment Co Degree of Operating Leverage Related Terms

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Centum Investment Co Business Description

Traded in Other Exchanges
N/A
Address
Limuru Road, Two Rivers Office Towers, P.O. Box 10518, 9th Floor, South Tower, Nairobi, KEN, 00100
Centum Investment Co Ltd is an investment company that provides access to a portfolio of inaccessible, quality, diversified investments to investors. Its objective is to consistently generate market-beating returns by building extraordinary enterprises throughout Africa. The company's operating segment include Private Equity; Real Estate and Marketable securities. The Private Equity segment includes publishing, financial services, and utility companies as well as also responsible for managing Development Portfolio. The Marketable securities segment includes dividend and interest income, real estate sales and proceeds from exits in the private equity and marketable securities portfolios and the Real Estate segment includes developments in East Africa.

Centum Investment Co Headlines

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